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THERE are fears of major service reductions at Mackay Base Hospital following reports of a $3.2 million Federal Government funding cut.

While the government has denied the cuts, Member for Dawson George Christensen said the funding reduction could mean more jobs would go from the health service.

"That $3.2 million cut is basically the funding equivalent of more than 30 hospital employees," Mr Christensen said.

"The local health board now has a terrible decision to make because of this funding cut by the Gillard Labor Government."

Mackay Hospital and Health Service Board chairman Col Meng said news of the cuts was not expected.

"This has come at a bad time given we are opening a brand new hospital and in the future will be looking at increasing services for our growing community," Mr Meng said.

"However, we have every confidence that Health Minister Lawrence Springborg and his department will continue to advocate with the Federal Government on our behalf.

"The board is yet to consider ramifications of the funding cut."

Meanwhile, a spokesman for Health Minister Tanya Plibersek said the claims were "part of a desperate attempt to divert attention from the savage cuts the LNP has made to the health system in Queensland".

"This three-card trick will not fool Queenslanders, who are well aware Campbell Newman just sacked 4140 health workers and cut funding for services such as breast screening and preventative health programs," the spokesman said.

"Mr Newman is cutting frontline services including nurses, dental services while his own budget papers confirmed he is slashing $1.6 billion from frontline services."

The spokesman said the government was, in fact, increasing funding to health services throughout the country.

"The Gillard Government's 2012-13 Budget update says that funding for health in Queensland will increase by 21% over the next four years, going from $3.1 billion in 2012-2013 to $3.7 billion in 2015-16," he said.

"That's an extra $600 million."

"The adjustment is based on ABS revised population figures and lower than anticipated increases in health costs as a result of the high Australian dollar."